Table of content

Page
Acknowledgement submission form...........................................................................................i
Table of content..........................................................................................................................1
1.1 Introduction of Cadbury Company......................................................................................2
1.2 Strategic Analysis of Cadbury Company..........................................................................3-4
1.2.1 4Ps of Cadbury............................................................................................................3
1.2.1.1 Product................................................................................................................4
1.2.1.2 Price.....................................................................................................................4
1.2.1.3 Place....................................................................................................................4
1.2.1.4 Promotion............................................................................................................4
1.2.2 Ansoff Matrix...............................................................................................................5
1.2.3 SWOT Analysis............................................................................................................6
1.3 Strategic formulation of Cadbury Company.....................................................................7-8
1.4 Strategic implementation of Cadbury Company.............................................................9-10
1.5 Conclusion & Recommendation........................................................................................11
Reference............................................................................................................................12-14
Appendix one......................................................................................................................15-18
Appendix two...........................................................................................................................19
Appendix three.........................................................................................................................20
Appendix four..........................................................................................................................21

1.1 Introduction of Cadbury Company

Cadbury Dairy Milk creates an enormous amount of happy feeling or emotions in a person
whenever they consume it. It stands for goodness because Cadbury gives values such as
bringing family togetherness to the personal enjoyment of an individual. The world has become
very synonymous with the word Cadbury. No matter where you go, no matter what you see,
no matter what you hear, Cadbury is the name people shouts when they are asked what
chocolates gives them the most beautiful inner feelings. Cadbury remains the top of everyones
wish list everyday just because of the taste that Cadbury gives the most delicious and best
tasting chocolate.

Cadbury had its very first own product produced in the year 1897. It was in the form of milk
chocolate bar, it is made by adding milk powder paste to the dark chocolate recipe of cocoa
mass, cocoa butter and sugar. Sadly, this product didnt reach great heights as it did not attract
a lot of interest among consumers. Those days, Swiss were the leading manufacturers in the
field of producing chocolates which was much better compared to other chocolate rivals. In the
year 1904, Mr George Cadbury developed a milk chocolate bar that had more milk compared
to other chocolates in the market. With time and consistency shown by Cadbury, the company
have created new different products to add to their collections of chocolates in the market. The
brands which was produced by Cadbury are the likes of Dairy Milk bars, Crunchie, Caramel,
Flake, Curly Wurly and Fudge.

1.2 STRATEGIC ANALYSIS OF CADBURY

Showcasing methodology is an arrangement of movement which is utilized by numerous

organizations around the globe, which helps the business reach its points and targets, it can
additionally aid a business when propelling another item as it serves to recognize which
distinctive systems might be best to utilize. Advertising methods might be part into two
principle classes which are the short term method and long term method. Short term methods
helps a business to centre basically on the four Ps: Product, price, place and promotion which
are fundamental to all organizations, as these four characteristics are the principle things which
help a business to accomplish targets in the event that they are utilized accurately. On the other
we have long term methods which are utilized to arrange the future movements of a business,
this can could be generating tables, for example, an Ansoff matrix which helps a business to
settle on numerous things, for example, whether to launch another item or to enhance past
items, general settling on the right choices on which sort of system to utilize is key, particularly
on account of Cadburys as it serves to choose how to launch another oat bar, to guarantee that
they achieve greatest deals. All around the following few pages I will talk about conceivable
short term and long term methods which Cadburys could utilize, demonstrating which kind of
system in each one case might be the most valuable to help them accomplish accomplishment
when there is a new product in the market.

1.2.1 4 Ps of Cadbury
1.2.1.1 A) Product
The objective of Cadbury in focusing on the products is to make every chocolate lovers to keep
a Dairy Milk product in their pockets. Keeping something sweet is a need that Cadbury are
trying to indulge in every persons mind and soul. Its nothing other than having a Dairy Milk
product, at times it just helps to cheer someones day regardless of where they are and what
they are doing. The feel good pure unadulterated milk chocolate which melts in the mouth
creates a very blissful after feelings. It is just not a chocolate product one buys and consumes
but it also gives a certain amount of delightful factor that one will feel after consuming it.

1.2.1.2 B) Price
Strategy used by Cadbury is market penetration pricing. They have undoubted used market
pricing by not reducing the price of their products instead what they did was in the market is
by introducing smaller packets of chocolates that value in a small amount of price. By offering
products at a low price, they have increase their penetration in the market. This strategy used
by them worked greatly as the sales of this smaller packaging products generated higher
revenue with low price. Thus, they have been smart enough is using this strategy to make
themselves known around the world.

1.2.1.3 C) Place
Cadbury products are all over the places wherever you go. Shopping malls, retail outlets, mini
markets and shops by the road sides actually sell Cadbury products because people loves it so
much and the craving for it is unbelievable. It is accessible everywhere because it will be easier
for people to purchase it and satisfy their cravings. Besides that, book outlets like MPH and
Borders actually does this as well because when people came by to get stuffs or just sits there
to read, they would have something munch on.

!.2.1.4 D) Promotion
Cadbury does sampling and give-aways promotion on their new products by giving out samples
at shopping malls, cafes and etc. For example, I remember once when I was in the shopping
mall where I went by to get some stuffs and Cadbury was giving out free new chocolates
product for tasting. This advertising move being used by them is essential in making a name
for the product brand. Moreover, the company have been making aggressive moves in the
market by advertising and doing promotions all over the place. Cadbury spends

their

promotion budget by the sales of the products. For example, about 13-14% of sales revenue
goes to advertising. Largely, this product is well known in the market and they are just making
good progress in expanding their brand.

1.2.2 Ansoff Matrix

An Ansoff Matrix can be used to make identifications and strategize many growth
strategies as Cadbury could benefit from it as it assists in focusing on the firms present value
and products in the market. The importance of using Ansoff Matrix is that it helps to identify
possible ways to make the business grow by generating new ideas to improve present products
or to produce new products in the future. There are four different parts that Cadbury should
look into which is market penetration, product development, market development and
diversification.

Firstly, I would like to discuss on market penetration. This is a move where the company
tries to achieve growth by using existing products that they have in the current market to try
and increase its share. The current product that is penetrating the market is Brunchbar. This
product is currently not doing so well as it is less popular among Cadbury lovers. People would
not buy it as it doesnt taste that good and many people dislikes it. Therefore, Cadbury should
look very closely into this picture and make necessary alterations needed to make
improvements. Secondly, I would like to discuss on product development. Product
development is when the company targets a new product in their current market segment. For
Cadbury to use this method, they have to make sure that their previous unsuccessful product
doesnt affect their plans to create a new product. This can be a very successful method to use
in the near future.

Thirdly, is the method of market development. This happens when Cadbury seeks growth
in the market by targeting their existing product and placing them in new markets. Therefore,
I feel that this move will be highly successful as they may have aimed their previous products
in the wrong market that gives bad return. Lastly, if Cadbury use diversification by aiming a
new product in a new market, it can be highly successful as Cadbury may have targeted wrong
product in other markets and this could give people in the new market a wrong impression on
their previous product.

1.2.3 SWOT Analysis

Strength

Creates stronger bonding among family members

It also brings community together

Their product offer is very wide

Strong research and development plus innovation

Weaknesses

Cadbury do not have enough funding and sponsorship to promote

A few unsuccessful product is hampering their brand image

Opportunities

Raising awareness for all the children and people involved

If the event is successful, it might be carried as annual event

Opportunity for family to network their networking with others

Cadbury might be able to contract themselves with more supplier

Threats

People might be more health conscious

Experiencing lost of income rather than gaining

Inflation can cause sales to reduce drastically

1.3 Strategic formulation of Cadbury Company

The formulation of every new product in the market is essential and critical as it will
determine the importance of the branding of the product. Cadbury has two targets for their
products one is trade customers who are equipped with the products and the other one is
customers who buys it. In recent years, within the market when the products are launched, it
has become an art which can make progress or break a product. Every successful launch of any
new products in the market will potentially gives awareness to customers and may be keen to
try it. There are two types of launch strategy that I will be discussing here which is the
competitor intelligence and customer loyalty tactics.

Competitor intelligence is to identify the competitors surrounding the market who are
more or less selling the same kind of products, target profilling of several competitors,
benchmarking and making analysis on a timely basis. Before a new product is distributed in
the market for consumers to try it, it is important for Cadbury to gain the support of the trade
customers. Hereby, every trade customers which are also known as retailers will view it as
helpful in encouraging consumers to visit their respective shops. This make sense as if the
products had failed to give any interest to the retailers and distributors, the costs of investing
in Cadbury products would not have met and they would not have stocked the products in the
first place. This is largely due to the commitment shown by Cadbury in conducting one-to-one
meetings with over 70 key trade customers to expand the brand. This method helped Cadbury
to build awareness and commitment for the launching and receiving significant orders for instore displays and merchandising of the product.

Customer loyalty tactics is to improve customer loyalty to those who loved consuming
Cadbury products. Traditionally, as always new products are launched in one region first to
know the products success before moving on to other region over a period of time. For an
example, Time Out was launched this way as it was a genuine success. The marketing strategies
used to market the products in the market is good enough because it attacts the right people
who have shown great loyalty towards the product at the right time and at a right price. All this
strategies accounts all the overall factors in promoting the products this way as it pays close
7

attention of the markets demands and expectation of the consumers. In my point of view, more
efforts are needed to make better advertising of the brand like some different kind of unique
promotional method to pull better loyalty from consumers and to formulate a stronger branding
name in the market globally.

Cadbury actually rolled out a marketing strategy to enhance the product awareness in
order to make good connections of the brand marketing to their products. The gigantic Cadbury
Daily Milk has formulated a 10-year brand communications strategy called Joyville. The
revamped foundation strategy aims to keep track on the levels of brand engagement enjoyed
with past ads and the same time focusing more on the core truth of the product(Matthew
Williams, Marketing Activation Director at Dairy Milk). Joyville is an idea which connects the
products as much as possible as it can be with its brand. It aims at capturing the attentions of
the public and huge companies worldwide just the way like how Facebook company have
captured the attention of the people globally. As we all are aware that Dairy Milk is Cadburys
main branding, Joyville if successful, could somehow make its move in extending to other
different brands in their portfolio.

1.4 Strategy implementation of Cadbury Company

Advertisement
One of the strategy implementation used by Cadbury is advertisements. In a very imaginative
manner, Cadbury targeted the market in terms of gender, age, income range earned and also
the behavioral attitudes of the people in the market. Cadbury then find various ways and ideas
to reach and address the target market. Cadbury incorporated different textual address on their
advertisements that they come out with whenever they produce new products. All this various
different kinds of textual address in a new trying to speak to certain specific sections of the
society, in return gives viewers a better understanding. Advertising a new product is essential
as many are not aware of it because it is new in the market. Many may have the impression that
if a new product is out, they may need the capture of the brand by itself. Advertising companies
have to play their exquisite role by advertising good work because they view themselves as
marketable entities and therefore must stand out for the service they claim to provide. Cadbury
uses television commercials to market all their new products that are less known or new in the
market place. The company also uses the Internet to promote all their new products.

Third party distribution

Another way Cadbury can implement is through third party distribution where the company
will allow their products to be sold by non competitors and other different businesses that sell
various kinds of products. Entrepreneurs are hired as they are seen as one to possess special
information and to obtain profits. Its very ambitious that building up core competencies and
different having it integrated vertically. Moreover, managers will decide if to make and decide
on the end products as the old products may not carry any defining value as time goes by. Old
products will expire over time and may not worth the keep. If a firm knows to plan well from
past experience on ways to efficiently build distribution networks that make enhance the
competitiveness of its product, then the firm will be able to find ways to place the necessary
assets more competitively and with a lower price than firms which lacks this competence. Third
party distribution gives Cadbury the chance to expand into more markets and making it easier
for people to purchase their brand. The third party distribution also enable the company to be
stronger competitively and would be able to survive in both markets; local and foreign market.
Innovation of products

Innovation of products is also one marketing strategy that can be used by Cadbury to maintain
and enhance its brand and name in the fast growing market place. Innovation of products simply
means that better creation on the present products in terms of taste and flavour that can attract
the attention of consumers. New product doesnt always carries luck when launched in a new
place or even by being in the right market. For an example, industries such as fast growing
industries and high-end technology achieved better valuable product performance on average
(Cooper 1993). A stand of intent has to be made, however, product strategies implemented will
have an effect on performance. Cadburys direction and commitment for all the new product
effort will all help in determining a good performance. A strategy-performance is important to
the management of the companys new products implementation. Through innovation,
Cadbury is able to keep its status in the foreign and local industry. To assist the company to
overcome its many problems and threats that they will face from other competitors, innovating
new chocolates with better taste will definitely help the company. Moreover, innovations will
help to attract clients and will show drastic resurge in purchasing of chocolates and other
similar products.

Traning and development programs

To have an effective fast work pace moving company, training plays a very important role for
development. How effective and productive one worker can be in an organization doesnt just
reflect upon the skills shown or working environment that they are working in but
dependability of the company to provide proper hands on training methods that can satisfy the
demands of the work. There will surely be a small gap between the job and skills shown by
workers. Therefore, all the gaps can be cemented by providing proper effective training and
development courses. As a result, the workers will be able to have an opportunity to improvised
their skills, demands of their job and enhance the production of the Cadbury company. Lastly,
with all the proper training and development courses organized by Cadbury for their workers
will show good return in terms of fulfilling own crave for knowledge and bring a whole new
level of the companys production.

1.5 Conclusion

10

To conclude, Cadbury have done remarkably well in penetrating their value for money products
globally. Its a very extreme unique brand of a product to have made their way into peoples
heart. Everyone from young kids to adults to old people loves Cadbury products very much.
The company understands the demand of the consumers and have maintain the quality of the
product professionally. Besides that, the pricing of Cadbury is a key factor as it is very
affordable to consume. Consumers find it cheap and reasonable. Not many product delivers the
kind of service that Cadbury gives to people.

Recommendation
Cadbury should maintain their dominance in the market
Organize more events for children to instilled ideas in them
Do more charity service for the people
Use the Internet source more seriously in promoting the products (Facebook, Google
etc) and radio channels as this kind of advertising does not generate a lot of money
Colourized the packaging in a more attractive manner
Create more different kinds of flavours and different shapes
Cadbury need to ensure that their products are safe to consume always. Any faulty
products should be discarded in advance

Reference
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14

CADBURYS APPENDIXES
Appendix 1 ( 4Ps of Cadbury )
Product

15

Price

16

Place

17

Promotion

18

Appendix 2 ( Ansoff Matrix )

19

Appendix 3 ( BCG Matrix )

20

Appendix 4 ( Annual sales of Cadbury year 2004-2007 )

21